2016 national health spend to surpass $10K per person, total $2.7 trillion by 2025
WASHINGTON — Between 2015 and 2025, according a new article in Health Affairs, growth in U.S. health spending is projected to increase about 5.8% on average — a number that surpasses growth in the gross domestic product (GDP) by 1.3 percentage points. And in 2016, the article projects that national health spending per capita will surpass $10,000 for the first time.
Despite the cost per capita, aggregate national spending growth, Medicaid spending growth is expected to slow this year, to 5.3% from an average of 10.8% in 2014-2015, with an expected from in prescription spending growth to 4.9% from the 17.7% growth seen in 2015. Private payers will also see steady low spending growth of 4.9%, down from 5.1% in 2015. Medicare, on the other hand, is expected to see its spending growth rise this year to 5.2%, an increase from the 4.6% growth it saw last year.
Moving into the period from 2017 to 2019, the Health Affairs report projects a rise in spending growth across sectors and payers, with national health spending expected to average 5.8% during that time, an increase over the 4.8% growth seen in 2016. Private payers will see their spending grow an average of 5.6%, Medicare will see average spending growth of 6.7% and Medicaid will see 5.6% growth on average. Medicare expenditures per beneficiary are also expected to rise from 1.8% in 3016 to an average of 3.7% from 2017-2019.
In the five years between 2020 and 2025, the report projects a 7.6% spending growth average for Medicare, 5.2% for Medicaid and about 5% for private payers. As spending growth increases, so too will the amount of costs that governments absorb. Governments are expected to sponsor about 47% of health costs by 2025, or nearly $2.7 trillion by 2025, with households and business expected to cover 53% of costs.
The report expects prescription drugs to have a smaller impact on health spending in the next 10 years than they did in 2014 and 2015, which it attributes to an expected drop in the number of approved new drugs, and the anticipated increase in availability of biosimilars.
PhRMA adds 5 member companies
WASHINGTON — The Pharmaceutical Research and Manufacturers of America on Friday announced that it had added five new companies to its membership roster. Three of the companies joined as members and two transitioned from research associates to full members.
New members are Alexion Pharmaceuticals and Jazz Pharmaceuticals, and Teva, AMAG Pharmaceuticals and Horizon Pharma made the transition to full members.
“On behalf of the PhRMA Board of Directors, I am proud to welcome these companies into our membership,” PhRMA chairman and Biogen CEO George A. Scangos said. “Together as an industry, we can continue our work on issues to advance biomedical innovation and improve patient care.”
These companies join PhRMA’s efforts to advocate for policy solutions focused on innovative treatments through drug discovery and development, promoting value-driven health care, engaging and empowering consumers and addressing market distortions.
“We are pleased to welcome these companies into our membership. Collectively, our members are at the forefront of the most exciting and innovative biopharmaceutical research taking place in the industry today,” PhRMA president and CEO Stephen Ubl said. “The addition of these biopharmaceutical research companies will help guide us as we advocate for patient-centric policies to enhance the private market and address costs holistically.”
Pharmacy automation market to hit $7.8B by 2018
ALBANY, N.Y. — New research from Transparency Market Research is taking a look at the market size of the global pharmacy automation systems market, highlighting big growth ahead in the next several years. TMR projects that the market will hit $7.8 billion in 2018, up from the $4.7 billion that the market was valued at in 2011. And a big driver of growth comes from automated dispensing systems.
Based on TMR’s research, about 48% of the overall market and generated revenue — about $2.3 billion — can be attributed to automated medication dispensing systems, and this segment is expected to see a compound annual growth rate (CAGR) of 6.7% by 2020, when it will be worth $3.6 billion.
“The pressing need to prevent medical prescription errors has stoked the demand for automated medication dispensing systems,” a TMR analyst said. "Dispensing the right dosage of medicine and reviewing the inventory at a specified location help to increase the efficiency of a pharmacy while keeping the costs low.”
TMR pointed out that the high cost of implementation has been and will continue to be a barrier to growth, even as the growth of e-prescribing (particularly in Europe and North America has fueled demand). Despite the barrier of upstart cost, though, the analysis projects a CAGR of 7.3% between 2012 and 2018.
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